Spotify (SPOT) earnings missed fourth-quarter estimates while showing promising growth in subscriber numbers and 2024 guidance. KeyBanc Managing Director Justin Patterson focuses on two key areas — "currency-neutral growth" and wider operating income guidance underscoring improving profitability. According to Patterson, Spotify's revenue miss could be attributed to foreign exchange headwinds. However, he noted guidance for operating income was 80 million euros above estimates, saying this reveals "profitability is getting better" over time. Patterson added that the focus should be on "podcast margin improvement" in 2024, as deal renegotiations help "flip" that business to profitability. Additionally, Patterson pointed to workforce reductions and other cost-saving efforts that will bolster free cash flow, margins, and savings as the "top line improves." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

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